Fund features: collective investment, risk diversification and professional financial management. Fund, broadly speaking, refers to a certain amount of funds set up for a certain purpose. It mainly includes trust and investment funds, provident funds, insurance funds, retirement funds and funds of various foundations. From the accounting point of view, capital is a narrow concept, which refers to funds with specific purposes and uses. The fund we are talking about mainly refers to the securities investment fund.

General funds mainly invest in large-cap blue-chip stocks, and when calculating the Shanghai Composite Index, large-cap blue-chip stocks also account for a great weight, so the decline and rise of funds are generally related to the decline and rise of the Shanghai Composite Index. However, it is different for different funds. Some funds are closely related to the Shanghai Composite Index, others are irrelevant, and even some funds can rise when the market falls, depending on what stocks the fund holds.

Investment funds originated in Britain, but prevailed in the United States. After the First World War, the United States replaced Britain as the new hegemon of the world economy, and jumped from a capital importing country to a capital exporting country. With the rapid growth of American economy, the increasingly complex economic activities make it more and more difficult for some investors to judge the economic trend. In order to effectively promote foreign trade and foreign investment, the United States began to introduce the investment trust fund system.